The downward trend of mortgage refinance rates began a downward plunge and in the last four weeks hit the lowest point of mortgage refinance rates since the beginning of mortgage refinance rates in the early 1950′s of the last century. That downward plunge was viewed as possible hazardous to the stock market and some analyst became concerned. That concern may or may not have been an influence of the mortgage refinance rates that quickly plugged the downward descent and started a slight almost invisible upward climb.
The increase in the 30 year fixed rate mortgage refinance rate rose from 3.49 to 3.55%. The 15 year fixed rate mortgage refinance rates rose from 2.80 to [email protected] The rise is barely perceivable but is seen as stopping the bleeding of mortgage refinance rates that some feared would make some banks pay people to borrow money instead of the opposite. The result may have improved sales in other areas of the economy as those who trade in mortgages tend to see any saving as a new spending incentive.
Generally, refinancing frees up some money in budgets that is supposedly used to make new home improvements or to buy other needed products.
How much is actually saved in terms of dollars would probably present a different picture of the savings in real dollars as compared to the blip in percentage rates. What is important is that the slight imperceptible rise in mortgage refinance rates is reported by the banking and real estate agents and works as a psychological inducement to spenders to feel that banks are charging more interest because buyers can still afford to buy and to pay those interest costs. That may or may not be true but the politics of such psychological maneuvering works to send out what could be false signals about the improving economic picture. Waiting for results of actual refinances in the existing home mortgage rates might be wiser before deciding if the stop on the plunging interest rates actually led some homeowners to refinance and to use the money from refinancing to spend in other areas of their life.